UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549s

                                    FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the period ended June 30, 2004
                     -------------


                                       or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the transition period from                   to                  .
                               -----------------    ------------------

Commission File Number 0-8667
                       ------

                         PUBLIC STORAGE PROPERTIES, LTD.
                         -------------------------------
             (Exact name of registrant as specified in its charter)

                   California                                 95-3196921
----------------------------------------------------   -------------------------
          (State or other jurisdiction of                (I.R.S. Employer
           incorporation or organization)              Identification Number)

    701 Western Avenue, Glendale, California                  91201-2349
----------------------------------------------------   -------------------------
     (Address of principal executive offices)                  (Zip Code)

Registrant's telephone number, including area code: (818) 244-8080.
                                                    ---------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.

               [X] Yes                   [ ] No


Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

               [ ] Yes                   [X] No


The Registrant is a limited partnership and issues units representing ownership
of limited partner interests, with a par value of $500.00 per unit. Number of
units outstanding at August 13, 2004: 20,000


<PAGE>


                         PUBLIC STORAGE PROPERTIES, LTD.

                                      INDEX

                                                                           Pages
                                                                           -----

PART I.       FINANCIAL INFORMATION (Item 3 not applicable)
              ---------------------

Item 1.       Financial Statements

              Condensed Balance Sheets at June 30, 2004
              and December 31, 2003                                            1

              Condensed Statements of Income for the Three
              and Six Months Ended June 30, 2004 and 2003                      2

              Condensed Statement of Partners' Equity for the
              Six Months Ended June 30, 2004                                   3

              Condensed Statements of Cash Flows for the
              Six Months Ended June 30, 2004 and 2003                          4

              Notes to Condensed Financial Statements                        5-9

Item 2.       Management's Discussion and Analysis of
              Financial Condition and Results of Operations                10-11

Item 2A.      Risk Factors                                                 12-13

Item 4.       Controls and Procedures                                         14

PART II.      OTHER INFORMATION (Items 2 - 5 not applicable)
              -----------------

Item 1.       Legal Proceedings                                               15

Item 6.       Exhibits and Reports on Form 8-K                                15


<PAGE>


                         PUBLIC STORAGE PROPERTIES, LTD.
                            CONDENSED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                                 June 30,         December 31,
                                                                                  2004                2003
                                                                          -------------------  -------------------
                                                                               (Unaudited)

                                     ASSETS
                                     ------
<S>                                                                         <C>                  <C>

Cash and cash equivalents                                                   $    1,204,000       $    1,070,000
Rent and other receivables                                                          58,000               47,000

Real estate facilities, at cost:
     Building, land improvements and equipment                                   9,485,000            9,422,000
     Land                                                                        2,476,000            2,476,000
                                                                          -------------------  -------------------
                                                                                11,961,000           11,898,000

     Less accumulated depreciation                                              (8,751,000)          (8,606,000)
                                                                          -------------------  -------------------
                                                                                 3,210,000            3,292,000

Other assets                                                                        34,000               13,000
                                                                          -------------------  -------------------

Total assets                                                                $    4,506,000       $    4,422,000
                                                                          ===================  ===================


                        LIABILITIES AND PARTNERS' EQUITY
                        --------------------------------


Accounts payable and accrued liabilities                                    $       77,000       $       74,000
Deferred revenue                                                                   175,000              176,000

Commitments and contingencies (Note 5)                                                   -                    -

Partners' equity:
     Limited partners' equity, $500 per unit, 20,000 units
       authorized, issued and outstanding                                        3,158,000            3,097,000
     General partners' equity                                                    1,096,000            1,075,000
                                                                          -------------------  -------------------

     Total partners' equity                                                      4,254,000            4,172,000
                                                                          --------------------  ------------------

Total liabilities and partners' equity                                      $    4,506,000       $    4,422,000
                                                                          ===================  ===================
</TABLE>


                            See accompanying notes
                                       1


<PAGE>


                         PUBLIC STORAGE PROPERTIES, LTD.
                         CONDENSED STATEMENTS OF INCOME
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                                   Three Months Ended                      Six Months Ended
                                                                         June 30,                              June 30,
                                                         --------------------------------------- -----------------------------------
                                                                  2004                2003                2004           2003
                                                         -------------------- ------------------- ------------------ ---------------

           REVENUES:
           <S>                                              <C>                <C>                 <C>                <C>
           Rental income                                    $    1,601,000     $    1,543,000      $    3,173,000     $    3,046,000
           Other income                                             11,000             11,000              25,000             22,000
                                                         -------------------- ------------------- ------------------ ---------------

                                                                 1,612,000          1,554,000           3,198,000          3,068,000
                                                         -------------------- ------------------- ------------------ ---------------

           COSTS AND EXPENSES:

           Cost of operations                                      360,000            364,000             708,000            690,000
           Management fees paid to affiliate                        96,000             93,000             190,000            185,000
           Depreciation                                             67,000            131,000             145,000            263,000
           Administrative                                           26,000             24,000              53,000             50,000
                                                         -------------------- ------------------- ------------------ ---------------

                                                                   549,000            612,000           1,096,000          1,188,000
                                                         -------------------- ------------------- ------------------ ---------------

           NET INCOME:                                      $    1,063,000     $      942,000      $    2,102,000     $    1,880,000

                                                         ==================== =================== =================  ===============

           Limited partners' share of net income ($79.05 per
             unit in 2004 and $69.75 per unit in 2003)                                                  1,581,000          1,395,000

           General partners' share of net income                                                          521,000            485,000
                                                                                                  ------------------ ---------------

                                                                                                   $    2,102,000     $    1,880,000
                                                                                                  =================  ===============
</TABLE>


                             See accompanying notes
                                       2


<PAGE>


                         PUBLIC STORAGE PROPERTIES, LTD.
                     CONDENSED STATEMENT OF PARTNERS' EQUITY
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                                 Total
                                                      Limited              General              Partners'
                                                     Partners'            Partners'              Equity
                                               --------------------- --------------------- --------------------

<S>                                             <C>                  <C>                   <C>
Balance at December 31, 2003                    $      3,097,000     $      1,075,000      $      4,172,000

Net income                                             1,581,000              521,000             2,102,000

Distributions                                         (1,500,000)            (520,000)           (2,020,000)

Equity transfer                                          (20,000)              20,000                     -
                                               --------------------- --------------------- -------------------

Balance at June 30, 2004                        $      3,158,000     $      1,096,000      $      4,254,000
                                               ===================== ===================== ===================
</TABLE>

                             See accompanying notes
                                       3


<PAGE>


                         PUBLIC STORAGE PROPERTIES, LTD
                       CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                       Six Months Ended
                                                                                           June 30,
                                                                            -----------------------------------------
                                                                                    2004                 2003
                                                                            -------------------- --------------------
  Cash flows from operating activities:

    <S>                                                                       <C>                  <C>
    Net income                                                                $     2,102,000      $     1,880,000

    Adjustments to reconcile net income to net cash provided by operating
       activities:

         Depreciation                                                                 145,000              263,000
         (Increase) decrease in rent and other receivables                            (11,000)               8,000
         (Increase) decrease in other assets                                          (21,000)              27,000
         Increase in accounts payable and accrued liabilities                           3,000                3,000
         (Decrease) increase in deferred revenue                                       (1,000)              20,000
                                                                            -------------------- --------------------

             Total adjustments                                                        115,000              321,000
                                                                            -------------------- --------------------

             Net cash provided by operating activities                              2,217,000            2,201,000
                                                                            -------------------- --------------------

  Cash flows from investing activities:

    Additions to real estate facilities                                               (63,000)            (124,000)
                                                                            -------------------- --------------------

             Net cash used in investing activities                                    (63,000)            (124,000)
                                                                            -------------------- --------------------

  Cash flows from financing activities:

    Distributions paid to partners                                                 (2,020,000)          (1,886,000)
                                                                            -------------------- --------------------

             Net cash used in financing activities                                 (2,020,000)          (1,886,000)

                                                                            -------------------- --------------------
  Net increase in cash and cash equivalents                                           134,000              191,000

  Cash and cash equivalents at the beginning of the period                          1,070,000              538,000
                                                                            -------------------- --------------------

  Cash and cash equivalents at the end of the period                          $     1,204,000      $       729,000
                                                                            ===================  ====================
</TABLE>


                             See accompanying notes
                                       4


<PAGE>


                         PUBLIC STORAGE PROPERTIES, LTD.
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)


1.       DESCRIPTION OF THE BUSINESS

         Public Storage Properties,  Ltd. (the "Partnership") is a publicly held
         limited   partnership  formed  under  the  California  Uniform  Limited
         Partnership Act in November 1976. The Partnership raised $10,000,000 in
         gross proceeds by selling 20,000 units of limited partnership  interest
         ("Units") in an interstate  offering,  which  commenced in October 1977
         and completed in January 1978. The general  partners in the Partnership
         are Public Storage, Inc. ("PSI") and B. Wayne Hughes ("Hughes").

         The  Partnership was formed to engage in the business of developing and
         operating  self-storage  facilities  for personal and business use. The
         Partnership owns nine self-storage facilities located in California.

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Basis of Presentation:
         ----------------------

         The accompanying  unaudited  condensed  financial  statements have been
         prepared in accordance with accounting principles generally accepted in
         the United States of America for interim financial information and with
         instructions   to  Form  10-Q  and  Article  10  of   Regulation   S-X.
         Accordingly,  they do not include all of the  information and footnotes
         required by  generally  accepted  accounting  principles  for  complete
         financial  statements.  In the opinion of management,  all  adjustments
         (consisting  of  normal,  recurring  accruals)  necessary  for  a  fair
         presentation  have been  included.  The results of  operations  for the
         three and six months ended June 30, 2004 are not necessarily indicative
         of the results  expected for the full year.  These unaudited  condensed
         financial  statements  should be read in conjunction with the financial
         statements and related notes appearing in the  Partnership's  Form 10-K
         for the year ended December 31, 2003.

         Use of Estimates:
         -----------------

         The  preparation  of the condensed  financial  statements in conformity
         with  accounting  principles  generally  accepted in the United  States
         requires  management to make estimates and assumptions  that affect the
         amounts reported in the condensed financial statements and accompanying
         notes. Actual results could differ from those estimates.

         Allocation of Net Income:
         -------------------------

         The  general   partners'  share  of  net  income  consists  of  amounts
         attributable  to  their  1%  capital  contribution  and  an  additional
         percentage  of cash flow (as  defined)  which  relates  to the  general
         partners' share of cash  distributions  as set forth in the Partnership
         Agreement (See "Ownership Interests by the General Partners" under Note
         4). All remaining net income is allocated to the limited partners.

         Per unit data is based on the  weighted  average  number of the limited
         partnership units (20,000) outstanding during the period.

         Cash and Cash Equivalents:
         --------------------------

         For financial statement purposes, the Partnership considers all highly
         liquid investments purchased with a maturity of six months or less to
         be cash equivalents.

         Income Taxes:
         -------------

         Public Storage Properties, Ltd. is treated as a partnership for Federal
         income tax purposes with the taxable income of the entity  allocated to
         each partner in accordance with the partnership agreement.

                                       5


<PAGE>


                        PUBLIC STORAGE PROPERTIES, LTD.
                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                                  (UNAUDITED)


         Real Estate Facilities and Evaluation of Asset Impairment:
         ----------------------------------------------------------

         Real estate  facilities are recorded at cost. Costs associated with the
         development, construction, renovation and improvement of properties are
         capitalized.  Interest, property taxes, and other costs associated with
         the development incurred during the construction period are capitalized
         as building cost.  Expenditures for repairs and maintenance are charged
         to  expense  as   incurred.   Depreciation   is   computed   using  the
         straight-line  method over the estimated  useful lives of the buildings
         and improvements,  which are generally between 5 and 25 years.  Certain
         real estate  facilities have been in service longer than 25 years,  and
         accordingly such buildings are fully depreciated at June 30, 2004.

         We evaluate our real estate for  impairment  on a quarterly  basis.  We
         first evaluate  these assets for indicators of impairment  such as a) a
         significant  decrease  in  the  market  price  of  real  estate,  b)  a
         significant adverse change in the extent or manner in which real estate
         is being used or in its physical  condition,  c) a significant  adverse
         change in legal  factors or the business  climate that could affect the
         value of the real estate, d) an accumulation of costs  significantly in
         excess of the amount  originally  projected for the  acquisition  of or
         construction of the real estate,  or e) a  current-period  operating or
         cash flow loss combined with a history of operating or cash flow losses
         or  a  projection  or  forecast  that  demonstrates  continuing  losses
         associated with the use of the real estate. When any such indicators of
         impairment are noted,  we compare the carrying value of the real estate
         to the future  estimated  undiscounted  cash flows  attributable to the
         real estate. If the real estate's  recoverable  amount is less than the
         carrying  value of the asset,  then an impairment  charge is booked for
         the excess of carrying  value over the real  estate's  fair value.  Our
         evaluations have identified no such impairments at June 30, 2004.

         Any real  estate  which we expect to sell or  dispose of prior to their
         previously  estimated  useful  life are  stated  at the  lower of their
         estimated net  realizable  value (less cost to sell) or their  carrying
         value.

         Revenue and Expense Recognition:
         --------------------------------

         Rental income,  which is generally  earned  pursuant to  month-to-month
         leases  for  storage  space,  is  recognized  as  earned.   Promotional
         discounts  are  recognized  as a  reduction  to rental  income over the
         promotional  period,  which is  generally  during  the  first  month of
         occupancy.  Late  charges and  administrative  fees are  recognized  as
         rental income when collected.

         Property taxes are accrued based upon estimates and historical  trends.
         If these  estimates are  incorrect,  the timing of expense  recognition
         could be affected.

         Cost of  operations,  general  and  administrative  expense  as well as
         television, yellow page and other advertising expenditures are expensed
         as incurred. Accordingly, the amounts incurred in an interim period may
         not be indicative of amounts to be incurred  during a full year.  Total
         advertising  expenses  were  $59,000 and  $66,000 for the three  months
         ended June 30, 2004 and 2003,  respectively,  and $117,000 and $132,000
         for the six months ended June 30, 2004 and 2003, respectively.

         Environmental Costs:
         --------------------

         The Partnership's policy is to accrue environmental  assessments and/or
         remediation  costs  when  it is  probable  that  such  efforts  will be
         required and the related  costs can be reasonably  estimated.  Although
         there  can be no  assurance,  we are  not  aware  of any  environmental
         contamination at any of our facilities,  which,  individually or in the
         aggregate,  would  be  material  to  our  overall  business,  financial
         condition or results of operations.

                                       6


<PAGE>


                        PUBLIC STORAGE PROPERTIES, LTD.
                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                                  (UNAUDITED)



3.       CASH DISTRIBUTIONS

         The  Partnership   Agreement  requires  that  any  cash  available  for
         distribution  (cash flow from all sources less cash  necessary  for any
         obligations  or  capital  improvement  needs) be  distributed  at least
         quarterly.  The  Partnership  paid  distributions  to the  limited  and
         general  partners  totaling  $1,500,000  ($75.00 per unit) and $520,000
         respectively,   for  the  six  months  ended  June  30,  2004.   Future
         distribution  rates may be adjusted to levels  which are  supported  by
         operating cash flow after capital  improvements and any other necessary
         obligations.

4.       RELATED PARTY TRANSACTIONS

         Management Agreement and Shared Expenses with PSI:
         --------------------------------------------------

         The Partnership has a Management Agreement with PSI. Under the terms of
         the agreement, PSI operates the self-storage facilities for a fee equal
         to 6% of the  facilities'  gross  revenue (as  defined).  For the three
         months ended June 30, 2004 and 2003, the  Partnership  paid PSI $96,000
         and $93,000,  respectively.  For the six months ended June 30, 2004 and
         2003,  the  Partnership  paid PSI $190,000 and $185,000,  respectively,
         pursuant to this management agreement.

         The  management  agreement  between  the  Partnership  and  PSI  may be
         terminated without cause upon 60 days written notice by the Partnership
         or six months notice by PSI.

         The  Partnership's  facilities,  along with facilities owned by PSI and
         its  affiliates,  are managed jointly by PSI in order to take advantage
         of scale  and  other  efficiencies.  Joint  costs  are  allocated  on a
         methodology  meant to fairly  allocate  such  costs.  Such joint  costs
         include  supervisory,   relief,  and  administrative  personnel  costs,
         television   advertising  expenses,   yellow  page  advertising,   data
         processing,  and  insurance.  The  total of such  expenses,  which  are
         primarily  included in cost of  operations,  amounted  to $164,000  and
         $165,000   for  the  three   months  ended  June  30,  2004  and  2003,
         respectively  . For the six months  ended June 30,  2004 and 2003,  the
         total expenses were $319,000 and $322,000, respectively.

         Ownership Interest by the General Partners:
         -------------------------------------------

         PSI and Hughes are general partners of the Partnership. In 1995, Hughes
         contributed  his  ownership  and  rights  to  distributions   from  the
         Partnership to BWH Marina Corporation II, a corporation wholly-owned by
         Hughes.  As such,  Hughes  continues to act as a general partner of the
         Partnership   but  does  not   directly   receive   any   compensation,
         distributions or other consideration from the Partnership.

         The  general  partners  have  a 1%  interest  in  the  Partnership.  In
         addition, the general partners had an 8% interest in cash distributions
         attributable to operations (exclusive of distributions  attributable to
         sale and financing  proceeds) until the limited partners  recovered all
         of  their  investment.  Thereafter,  the  general  partners  have a 25%
         interest  in all  cash  distributions  (including  sale  and  financing
         proceeds).  During 1987,  the limited  partners  recovered all of their
         initial investment.  All subsequent distributions are being made 25.75%
         (including  the 1% interest) to the general  partners and 74.25% to the
         limited  partners.   Transfers  of  equity  are  made  periodically  to
         reconcile  the  partners'  equity  accounts  to the  provisions  of the
         Partnership  Agreement.  These  transfers  have no effect on results of
         operations or distributions to partners.

         As of June 30, 2004,  Hughes and members of his family own 31.4% of the
         Limited  Partnership  units.  PSI and its  affiliates  own 31.4% of the
         Limited Partnership units.


                                       7


<PAGE>


                        PUBLIC STORAGE PROPERTIES, LTD.
                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                                  (UNAUDITED)


         Ownership in STOR-Re:
         ---------------------

         The  Partnership  has a  0.9%  ownership  interest  in  STOR-Re  Mutual
         Insurance  Corporation  ("STOR-Re"),  which  was  formed  in 1994 as an
         association  captive insurance  company,  and is controlled by PSI. The
         Partnership  accounts for its investment in STOR-Re,  which is included
         in other  assets,  using  the cost  method,  and has not  received  any
         distributions during 2003 or for the six months ended June 30, 2004.

         STOR-Re provided limited property and liability  insurance  coverage to
         the Partnership, PSI, and affiliates for losses occurring during policy
         periods  prior to April 1,  2004.  An  entity  wholly  owned by PSI has
         succeeded  STOR-Re with respect to policy  periods  subsequent to March
         31, 2004. STOR-Re  liabilities for losses and loss adjustment  expenses
         include an amount determined from loss reports and individual cases and
         an amount,  based on  recommendations  from an outside  actuary using a
         frequency and severity  method,  for losses  incurred but not reported.
         Determining the liability for unpaid losses and loss adjustment expense
         is based  upon  estimates  and  while we  believe  that the  amount  is
         adequate,  the  ultimate  loss  may be in  excess  of or less  than the
         amounts  provided.  The  methods  for  making  such  estimates  and for
         establishing the resulting liability are continually reviewed.

5.       COMMITMENTS AND CONTINGENCIES

         Legal Proceedings:
         ------------------

         Serrao v. Public  Storage,  Inc.  (filed April 2003)  (Superior Court -
         -----------------------------------------------------------------------
         Orange County)
         --------------

         The  plaintiff  in this case  filed a suit  against  PSI on behalf of a
         putative  class of  renters  who  rented  self-storage  units from PSI.
         Plaintiff  alleges  that PSI  misrepresented  the  size of its  storage
         units,  has brought  claims under  California  statutory and common law
         relating  to  consumer  protection,   fraud,  unfair  competition,  and
         negligent   misrepresentation,   and  is  seeking   monetary   damages,
         restitution, and declaratory and injunctive relief.

         The claim in this case is  substantially  similar to those in Henriquez
         v. Public  Storage,  Inc.,  which was  disclosed in prior  reports.  In
         January  2003,  the  plaintiff   caused  the  Henriquez  action  to  be
         dismissed.  Based upon the  uncertainty  inherent in any putative class
         action, PSI cannot presently  determine the potential damages,  if any,
         or the ultimate  outcome of this  litigation.  On November 3, 2003, the
         court granted PSI's motion to strike the plaintiff's  nationwide  class
         allegations  and to limit any putative  class to  California  residents
         only.  PSI is vigorously  contesting the claims upon which this lawsuit
         is based including class certification efforts.

         Salaam et al v. Public  Storage,  Inc.  (filed February 2000) (Superior
         -----------------------------------------------------------------------
         Court - Los Angeles County)
         ---------------------------

         The plaintiffs in this case are suing PSI on behalf of a putative class
         of California  resident  property managers who claim that they were not
         compensated  for all the hours they worked.  The named  plaintiffs have
         indicated  that their claims total less than $20,000 in  aggregate.  On
         December 1, 2003, the California  Court of Appeals affirmed the Supreme
         Court's 2002 denial of plaintiff's motion for class certification.  The
         maximum  potential  liability  cannot  be  estimated,  but can  only be
         increased  if claims  are  permitted  to be brought on behalf of others
         under the California Unfair Business  Practices Act. The affirmation of
         denial of class  certification  does not  address  the claim  under the
         California Unfair Business Practices Act.

         PSI is  continuing  to  vigorously  contest the claims in this case and
         intends to resist any expansion beyond the named plaintiffs,  including
         by opposing claims on behalf of others under the California Unfair

                                       8


<PAGE>


                        PUBLIC STORAGE PROPERTIES, LTD.
                    NOTES TO CONDENSED FINANCIAL STATEMENTS
                                  (UNAUDITED)



         Business  Practices Act. PSI cannot  presently  determine the potential
         damages, if any, or the ultimate outcome of this litigation.

         Other Items
         -----------

         PSI and The Partnership are parties to various claims,  complaints, and
         other legal  actions that have arisen in the normal  course of business
         from time to time that are not described  above.  We believe that it is
         unlikely  that the outcome of these  other  pending  legal  proceedings
         including  employment and tenant claims, in the aggregate,  will have a
         material  adverse impact upon the  operations or financial  position of
         the Partnership.
















                                       9


<PAGE>


ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        ------------------------------------------------------------------------
        OF OPERATIONS
        -------------

         The  following  should be read in  conjunction  with the  Partnership's
condensed financial statements and notes thereto.

         FORWARD LOOKING STATEMENTS:  When used within this document,  the words
"expects," "believes,"  "anticipates," "may," "should," "estimates," and similar
expressions  are intended to identify  "forward-looking  statements"  within the
meaning of that term in Section 27A of the  Securities  Exchange Act of 1933, as
amended,  and in Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements involve known and unknown risks,  uncertainties,
and other  factors,  which may cause the actual  results and  performance of the
Partnership to be materially  different  from those  expressed or implied in the
forward  looking  statements.  Such factors are described in "Risk  Factors" (as
discussed below) and include changes in general  economic  conditions and in the
markets in which the Partnership operates and the impact of competition from new
and existing storage and commercial  facilities and other storage  alternatives,
which could impact rents and occupancy levels at the  Partnership's  facilities;
the impact of the regulatory  environment as well as national,  state, and local
laws and regulations,  which could increase the Partnership's expense and reduce
the Partnership's cash available for distribution;  and economic uncertainty due
to the impact of war or terrorism could  adversely  affect our business plan. We
disclaim  any  obligation  to publicly  release the results of any  revisions to
these   forward-looking   statements   reflecting  new   estimates,   events  or
circumstances after the date of this report.

CRITICAL ACCOUNTING POLICIES
         ----------------------------

         IMPAIRMENT  OF  LONG-LIVED  ASSETS:  Substantially  all of  our  assets
consist of real  estate.  On a quarterly  basis we evaluate  our real estate for
impairment.  The evaluation of real estate for impairment  requires  determining
whether indicators of impairment exist, which is a subjective process.  When any
indicators of impairment are found,  the evaluation then entails  projections of
future operating cash flows, which also involves significant  judgment.  We have
identified no such  impairments at June 30, 2004.  However,  future  events,  or
facts and  circumstances  that currently  exist that we have not yet identified,
could cause us to conclude in the future that our real estate is  impaired.  Any
resulting  impairment loss could have a material adverse impact on our financial
condition and results of operations.

         ESTIMATED USEFUL LIVES OF LONG-LIVED  ASSETS:  Substantially all of our
assets consist of depreciable, long-lived assets. We record depreciation expense
with respect to these assets based upon their estimated useful lives. Any change
in the estimated useful lives of those assets,  caused by functional or economic
obsolescence  or other  factors,  could  have a material  adverse  impact on our
financial condition or results of operations.

         ACCRUALS  FOR  CONTINGENCIES:  We are  exposed  to  business  and legal
liability  risks with respect to events that have  occurred,  but in  accordance
with  generally  accepted  accounting  principles  we have not  accrued for such
potential  liabilities  because the loss is either not probable or not estimable
or  because  we are not aware of the  event.  Future  events  and the  result of
pending  litigation could result in such potential losses becoming  probable and
estimable, which could have a material adverse impact on our financial condition
or results of operations.  Some of these potential  losses of which we are aware
are described in Note 5 to the Partnership's financial statements.

         ACCRUALS FOR OPERATING EXPENSES: We accrue for property tax expense and
other operating  expenses based upon estimates and historical trends and current
and  anticipated  local and state  government  rules and  regulations.  If these
estimates and assumptions are incorrect,  our expenses could be misstated.  Cost
of operations, general and administrative expense, as well as television, yellow
page, and other advertising expenditures are expensed as incurred.  Accordingly,
the amounts  incurred in an interim  period may not be indicative of the amounts
to be incurred in a full year.


                                       10

<PAGE>


RESULTS OF OPERATIONs
--------------------------------------------------------------------------------

THREE MONTHS ENDED JUNE 30, 2004 COMPARED TO THREE MONTHS ENDED JUNE 30, 2003:

          Our net income for the three months ended June 30, 2004 was $1,063,000
compared to $942,000 for the three months ended June 30, 2003,  representing  an
increase of $121,000 or 13%.

          Rental income for the three months ended June 30, 2004 was  $1,601,000
compared to $1,543,000 for the three months ended June 30, 2003, representing an
increase of $58,000 or 4%. The increase in rental  income was primarily a result
of an increase in realized  rent per square  foot.  Weighted  average  occupancy
levels at the  self-storage  facilities  were 92% and 91% for the  three  months
ended June 30, 2004 and 2003,  respectively.  Annual realized rent for the three
months ended June 30, 2004 increased to $13.62 per occupied square foot compared
to $13.35 per occupied square foot for the three months ended June 30, 2003.

          Cost of operations  (including  management fees paid to an affiliate -
see Note 4 to the financial statements) for the three months ended June 30, 2004
was  $456,000  compared to $457,000  for the three  months  ended June 30, 2003,
representing an decrease of $1,000.

          Depreciation  expense was $67,000 for the three  months ended June 30,
2004  compared to $131,000 for the same period in 2003, a decrease of $64,000 or
49%. The decrease in  depreciation  expense is primarily  related to the initial
development costs of buildings for many self-storage  facilities  becoming fully
depreciated.

SIX MONTHS ENDED JUNE 30, 2004 COMPARED TO SIX MONTHS ENDED JUNE 30, 2003:

          Our net income for the six months  ended June 30, 2004 was  $2,102,000
compared to $1,880,000 for the six months ended June 30, 2003,  representing  an
increase of $222,000 or 12%.

          Rental  income for the six months  ended June 30, 2004 was  $3,173,000
compared to $3,046,000 for the six months ended June 30, 2003,  representing  an
increase of $127,000 or 4%. The  increase in rental  income was the result of an
increase in realized rent per square foot and higher weighted average  occupancy
levels.  Weighted average  occupancy levels at the self-storage  facilities were
91% and 89% for the six  months  ended  June 30,  2004 and  2003,  respectively.
Annual  realized rent for the six months ended June 30, 2004 increased to $13.63
per occupied square foot compared to $13.35 per occupied square foot for the six
months ended June 30, 2003.

          Cost of operations  (including  management fees paid to an affiliate -
see Note 4 to the financial  statements)  for the six months ended June 30, 2004
was  $898,000  compared  to  $875,000  for the six months  ended June 30,  2003,
representing  an increase of $23,000 or 3%. The increase  primarily  consists of
increases in costs of repairs and maintenance, property insurance, property tax,
and utilities, partially offset by a reduction in advertising expenses.

          Depreciation  expense was  $145,000  for the six months ended June 30,
2004  compared to $263,000  for the same period in 2003 and decrease of $118,000
or 45%. The decrease in depreciation expense is primarily related to the initial
development costs of buildings for many self-storage  facilities  becoming fully
depreciated.

LIQUIDITY AND CAPITAL RESOURCES
--------------------------------------------------------------------------------

          Cash generated from  operations  ($2,217,000  for the six months ended
June 30,  2004)  has been  sufficient  to meet all  current  obligations  of the
Partnership.

          We paid  distributions  to the limited and general  partners  totaling
$1,500,000  ($75.00  per unit) and  $520,000,  respectively,  for the six months
ended June 30, 2004. Future  distribution  rates may be adjusted to levels which
are supported by operating  cash flow after capital  improvements  and any other
necessary obligations.

          The  Partnership may borrow in the future with the intent of using the
proceeds to finance distributions to the limited and general partners.


                                       11


<PAGE>


ITEM 2A.  RISK FACTORS
          ------------

          In  addition  to the other  information  in our Form  10-Q and  Annual
Report on Form 10-K for the year ended  December 31, 2003,  you should  consider
the following factors in evaluating the Partnership:

          PUBLIC   STORAGE  HAS  A  SIGNIFICANT   DEGREE  OF  CONTROL  OVER  THE
          PARTNERSHIP.

          Public Storage is general partner and owns approximately  31.4% of our
outstanding  limited  partnership  units.  As a  result,  Public  Storage  has a
significant  degree  of  control  over  matters  submitted  to  a  vote  of  our
unitholders,  including  amending our organizational  documents,  dissolving the
Partnership and approving other extraordinary transactions.

         DEPENDENCY UPON AUTOMATED PROCESSES.

          We have become  increasingly  centralized and dependent upon automated
information technology processes.  As a result, we could be severely impacted by
a catastrophic occurrence, such as a natural disaster or a terrorist attack.

          SINCE OUR BUSINESS CONSISTS  PRIMARILY OF ACQUIRING AND OPERATING REAL
ESTATE, WE ARE SUBJECT TO REAL ESTATE OPERATING RISKS.

          The value of our  investments  may be reduced by general risks of real
estate  ownership.  Since we derive  substantially  all of our income  from real
estate  operations,  we  are  subject  to  the  general  risks  of  owning  real
estate-related assets, including:

          o lack of demand for rental spaces or units in a locale;

          o changes in general economic or local conditions;

          o changes in supply of or demand for similar or  competing  facilities
            in an area;

          o natural disasters, such as earthquakes;

          o potential terrorists attacks;

          o the impact of environmental protection laws;

          o changes in interest rates and  availability of permanent  mortgage
            funds which may render the sale or financing of a property difficult
            or unattractive; and

          o changes in tax, real estate and zoning laws.

          There is significant  competition  among  self-storage  facilities and
from  other  storage  alternatives.  All  of  our  properties  are  self-storage
facilities.  Local  market  conditions  will  play  a  significant  part  in how
competition will affect us. Competition in the market areas in which many of our
properties  are located from other  self-storage  facilities  and other  storage
alternatives is significant and has affected the occupancy levels,  rental rates
and operating  expenses of some of our properties.  Any increase in availability
of funds for  investment  in real  estate may  accelerate  competition.  Further
development of self-storage facilities may intensify competition among operators
of self-storage facilities in the market areas in which we operate.

          We may incur significant  environmental  costs and liabilities.  As an
owner of real properties,  under various federal,  state and local environmental
laws, we are required to clean up spills or other releases of hazardous or toxic
substances  on  or  from  our  properties.  Certain  environmental  laws  impose
liability whether or not the owner knew of, or was responsible for, the presence
of the  hazardous  or toxic  substances.  In some  cases,  liability  may not be
limited to the value of the property.  The presence of these substances,  or the
failure to properly  remediate any resulting  contamination,  also may adversely
affect the owner's or operator's  ability to sell, lease or operate its property
or to borrow using its property as collateral.


                                       12


<PAGE>


          We  have  conducted  preliminary   environmental  assessments  on  the
properties  the  Partnership  has an interest in to evaluate  the  environmental
condition of, and  potential  environmental  liabilities  associated  with,  our
properties.   These  assessments   generally  consist  of  an  investigation  of
environmental  conditions at the property  (not  including  soil or  groundwater
sampling or analysis),  as well as a review of available  information  regarding
the site and publicly available data regarding  conditions at other sites in the
vicinity.  In connection with these property  assessments,  we have become aware
that prior  operations or activities at some facilities or from nearby locations
have or may have resulted in  contamination  to the soil or groundwater at these
facilities.  In this regard, some of our facilities are or may be the subject of
federal or state environment  investigations  or remedial  actions.  Although we
cannot  provide  any   assurance,   based  on  the   preliminary   environmental
assessments,  we believe we have funds  available  to cover any  liability  from
environmental  contamination or potential  contamination and we are not aware of
any  environmental  contamination  of our  facilities  material  to our  overall
business, financial condition or results of operation.

          There has been an increasing  number of claims and litigation  against
owners and  managers of rental  properties  relating  to moisture  infiltration,
which can result in mold or other property  damage.  When we receive a complaint
concerning  moisture  infiltration,  condensation or mold problems and/or become
aware that an air quality concern exists,  we implement  corrective  measures in
accordance  with  guidelines and protocols we have developed with the assistance
of  outside  experts.  We seek to work  with our  tenants  to  resolve  moisture
infiltration and mold-related issues, subject to our contractual  limitations on
liability for such claims. However, we can make no assurance that material legal
claims  relating to moisture  infiltration  and the presence of, or exposure to,
mold will not arise in the future.

          Property  taxes  can  increase  and  cause  a  decline  in  yields  on
investments.  Each of our  properties is subject to real property  taxes.  These
real property  taxes may increase in the future as property tax rates change and
as our properties are assessed or reassessed by tax authorities.  Such increases
could adversely impact the Partnership's profitability.

          We must comply with the Americans with  Disabilities  Act and fire and
safety  regulations,   which  can  require  significant  expenditures.  All  our
properties must comply with the Americans with Disabilities Act and with related
regulations  (the  "ADA").  The ADA has  separate  compliance  requirements  for
"public accommodations" and "commercial facilities," but generally requires that
buildings be made  accessible to persons with  disabilities.  Various state laws
impose similar  requirements.  A failure to comply with the ADA or similar state
laws could result in government  imposed fines on us and the award of damages to
individuals affected by the failure. In addition, we must operate our properties
in compliance with numerous local fire and safety  regulations,  building codes,
and other land use regulations.  Compliance with these  requirements can require
us to spend  substantial  amounts of money,  which would  reduce cash  otherwise
available  for   distribution   to  partners.   Failure  to  comply  with  these
requirements could also affect the marketability of our real estate facilities.

          TERRORIST ATTACKS AND THE POSSIBILITY OF WIDER ARMED CONFLICT MAY HAVE
AN ADVERSE  IMPACT ON OUR BUSINESS AND OPERATING  RESULTS AND COULD DECREASE THE
VALUE OF OUR ASSETS.

          Terrorist  attacks and other acts of  violence  or war,  such as those
that took place on September 11, 2001,  could have a material  adverse impact on
our business and operating  results.  There can be no assurance  that there will
not be further  terrorist attacks against the United States or its businesses or
interests.  Attacks or armed  conflicts that directly  impact one or more of our
properties  could  significantly  affect our ability to operate those properties
and thereby  impair our operating  results.  Further,  we may not have insurance
coverage for losses  caused by a terrorist  attack.  Such  insurance  may not be
available,  or if it is  available  and  we  decide  to  obtain  such  terrorist
coverage,  the cost for the insurance may be significant in  relationship to the
risk  overall.  In  addition,  the adverse  effects  that such  violent acts and
threats of future attacks could have on the U.S.  economy could similarly have a
material  adverse  effect on our  business and results of  operations.  Finally,
further terrorist acts could cause the United States to enter into a wider armed
conflict, which could further impact our business and operating results.


                                       13


<PAGE>


ITEM 4.  CONTROLS AND PROCEDURES
         -----------------------

          Public Storage, Inc. maintains disclosure controls and procedures that
are designed to ensure that information  required to be disclosed in reports the
Partnership  files and submits under the Exchange  Act, is recorded,  processed,
summarized and reported within the time periods specified in accordance with SEC
guidelines  and that  such  information  is  communicated  to the  Partnership's
management,  including its Chief Executive Officer and Chief Financial  Officer,
to allow timely decisions  regarding required disclosure based on the definition
of "disclosure  controls and  procedures" in Rule 13a-15(e) of the Exchange Act.
In designing and evaluating the disclosure  controls and procedures,  management
recognized  that any controls and  procedures,  no matter how well  designed and
operated, can provide only reasonable assurance of achieving the desired control
objectives  and  management  necessarily  was  required to apply its judgment in
evaluating the cost-benefit  relationship of possible controls and procedures in
reaching that level of reasonable assurance.

          At the end of the period covered by this report,  Public Storage, Inc.
carried out an evaluation,  under the supervision and with the  participation of
the Partnership's  management,  including Public Storage, Inc.'s Chief Executive
Officer and Chief  Financial  Officer,  of the  effectiveness  of the design and
operation of the Partnership's  disclosure  controls and procedures.  Based upon
that  evaluation,  the  Chief  Executive  Officer  and Chief  Financial  Officer
concluded  that  the  Partnership's  disclosure  controls  and  procedures  were
effective.

          There have not been any changes in our internal control over financial
reporting (as such term is defined in Rules  13a-15(f)  and 15d-15(f)  under the
Exchange  Act) during the fiscal  quarter to which this report  relates that has
materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.


                                       14


<PAGE>


PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS
         -----------------

          The  Partnership  is a party to the actions  described  under "Item 3.
Legal  Proceedings" in the Partnership's  2003 annual report on Form 10-K. There
have been no material developments in the actions described in the Partnership's
2003 annual report on Form 10-K.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
         --------------------------------

        (a) The following Exhibits are included herein:

                31.1      Certification by Ronald L. Havner,  Jr. pursuant to 18
                          U.S.C.  Section 1350,  as adopted  pursuant to section
                          302 of the Sarbanes-Oxley Act of 2002

                31.2      Certification  by John  Reyes  pursuant  to 18  U.S.C.
                          Section  1350,  as adopted  pursuant to section 302 of
                          the Sarbanes-Oxley Act of 2002

                32        Certification  of CEO and CFO  pursuant  to 18  U.S.C.
                          Section  1350,  as adopted  pursuant to section 906 of
                          the Sarbanes-Oxley Act of 2002

        (b) Form 8-K

                None


                                       15


<PAGE>


                                   SIGNATURES

          Pursuant to the  requirements of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.







                                                          DATED: August 13, 2004

                                                 PUBLIC STORAGE PROPERTIES, LTD.

                                                      BY:  Public Storage, Inc.,
                                                                 General Partner





                                                            BY:   /s/ John Reyes
                                                                  --------------
                                                                      John Reyes
                                                       Senior Vice President and
                                                         Chief Financial Officer







                                       16


<PAGE>